India’s pharmaceutical sector, often called the “pharmacy of the world,” is recalibrating its global trade strategy amid concerns over tariff pressures from the U.S.—its largest export destination. With exports to the U.S. already rising significantly, the focus now is on diversification to reduce dependence and strengthen resilience in global markets.

---

Current Scenario

• U.S. Dependence: Exports to the U.S. touched $10.5 billion in FY 2025, a 20% increase year-on-year.
• Tariff Risk: Concerns over potential tariff barriers in the U.S. have accelerated efforts to explore other markets.
• China Factor: India imports over 60% of its raw materials (APIs) from China, contributing to a massive $99.2 billion trade deficit in FY 2025.

---

Pharmexcil’s Strategic Approach

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) is spearheading a comprehensive plan to diversify and strengthen exports:

1. Market Diversification – Expansion into Africa, Latin America, Southeast Asia, Russia, Brazil, and the Netherlands to reduce U.S. reliance.
2. Collaboration Initiatives – Encouraging partnerships between small and medium enterprises (SMEs) and larger companies to enhance competitiveness in semi-regulated markets.
3. China Trade Balance – Boosting finished goods exports to China to offset the heavy dependence on raw material imports.
4. Government Strategy – Preparing to submit an official export roadmap to the government for policy support.
5. Support Services – Providing exporters with market insights, advocacy, training, and networking opportunities to ease global expansion.

---

Key Data Table: India’s Pharmaceutical Export Landscape

Aspect	Details
U.S. Exports (FY 2025)	$10.5 billion (20% year-on-year growth)
Main Concern	Over-dependence on U.S. market and potential tariffs
New Target Markets	Africa, Latin America, Southeast Asia, Russia, Brazil, Netherlands
China Trade Deficit (FY 2025)	$99.2 billion; over 60% of raw materials (APIs) sourced from China
Pharmexcil Focus	Diversification, SME collaboration, export growth to China
Collaboration Strategy	Linking SMEs with large firms for semi-regulated market access
Support to Exporters	Market data, policy advocacy, training, trade events, compliance guidance
Future Plans	Submission of detailed export strategy to Indian government

---

Conclusion

India’s pharmaceutical industry stands at a critical juncture. While the U.S. remains a vital export market, the dual risks of tariff pressures and dependence on Chinese raw materials underscore the need for a balanced global trade portfolio. Through Pharmexcil’s initiatives—from market diversification to SME collaboration and strategic government engagement—India is positioning itself to enhance competitiveness, expand its global footprint, and sustain its role as a leading supplier of affordable, high-quality medicines worldwide.